Compton, California Funded Loan
Property Type: Investment Rental Property
Lien Position: 1st Trust Deed
Loan Amount: $330,000.00
Appraised Value: $490,000.00
Loan Rate: 11%
Loan Type: Investment Purpose
Occupancy: Non-Owner Occupancy
Term: 36 Months Interest Only
Compton, California – Our Client/Borrower, was seeking a new $330,000.00 1st Trust Deed Loan to “Clean Up” mortgage delinquencies on both the Subject Property and another Single-Family Rental property located in Compton, California.
The current delinquencies that client is experiencing is due to nonpaying Tenants in his property, that took the client over “8” months and many thousands of dollars in legal fees to get the Tenants who were working with a Professional Eviction Delay company out of the property. Following the completion of the eviction, the borrower was left with a house that was badly damaged by the evicted Tenants.
The borrower had to spend over $20,000.00 to repair the property in order to get the property back to “Rent Ready Condition”. The client went over “10” months NOT receiving rent, spending many thousands of dollars in legal fees in addition to the subsequent repair funds in order to finally be able to rent out the Compton property.
The Subject Property located in Compton, California is rented out to Multiple Tenants, which our borrower has been his practice for more than “5” years.
The Subject Property’s Scheduled monthly rent is $2,900.00 per month, and after including the proposed monthly mortgage payment, property taxes and Insurance, there will be approximately $450.00 in monthly loss on the Subject Property. The borrower is a PHD Instructor at Compton Unified School District.
The client will have no problem covering the monthly rental loss from his substantial monthly salary.
The plan of payback is to either refinance or list and sell the Subject Property prior to the maturity date of the proposed loan.